In Nigeria, which now makes up a 14.0% position in FM, saw its market shrink by an record N186 billion, or $1.15 billion, over August, Leadership reports. The Global X Nigeria Index ETF (NYSEArca: NGE) declined 1.5% over the past month. [Nigeria ETFs Get a Lift From Frontier Index Changes]

Levy also argues that the frontier markets show relatively cheap valuations. For instance, FM’s stock portfolio shows a 12.4 price-to-earnings ratio and a 1.8 price-to-book. In comparison, the S&P 500 shows a 17.0 P/E and a 2.3 P/B.

iShares MSCI Frontier 100 ETF

For more information on frontier economies, visit our frontier markets category.

Max Chen contributed to this article.